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Central banks prepare to rebuff investors over path of interest rates

US Fed, ECB and BoE meet this week as strong labour data suggests policy pivot unlikely
All three central banks have signalled that they want clearer evidence of weakening labour markets before easing policy

Leading central banks are preparing to rebuff investors’ bets about the pace at which interest rates will fall, as they meet for the final time this year amid strong employment numbers.

Investors have been betting that policymakers in the US, the eurozone and the UK will start loosening monetary policy early in the new year, fuelling an easing in financial conditions for businesses, as they focus on falling headline inflation readings.

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